Use the Following Information for Questions 59 and 60

question 160

Multiple Choice

Use the following information for questions 59 and 60.
On May 1, 2014, Marly Co. issued $1,500,000 of 7% bonds at 103, which are due on April 30, 2024. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marly's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2014, the fair value of Marly's common stock was $35 per share and of the warrants was $2.
-On May 1, 2014, Marly should record the bonds with a

• A) discount of $60,000.
• B) discount of $15,000.
• C) discount of $16,800.
• D) premium of $45,000.

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